Discovery Reports First Quarter 2024 Financial Results

Discovery Silver Corp.
Discovery Silver Corp.
Discovery Silver Corp.
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TORONTO, May 14, 2024 (GLOBE NEWSWIRE) -- Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) today announced financial results for the three months ended March 31, 2024 (“Q1 2024”). The Company also provided a summary of key events since the beginning of 2024, including the release on February 20, 2024, of the feasibility study results (the “Feasibility Study” or “Study”) for Discovery’s 100%-owned Cordero silver project (“Cordero” or the “Project”) in Chihuahua State, Mexico. All figures are stated in Canadian dollars unless otherwise noted.

Tony Makuch, CEO, commented: “During Q1 2024, we achieved a major milestone with the release of the Feasibility Study for our Cordero Project. The Study results clearly establish Cordero as one of the world’s largest silver development projects both in terms of reserves and estimated production. The Project will average 37 million silver equivalent (“AgEq”)1 ounces (“Moz”) annually over the first 12 years with low unit costs that will generate attractive economic returns. Very importantly, the Project will deliver substantial socio-economic benefits in Mexico in the form of job creation, skills training, direct investment, the purchasing of local goods and services and tax revenue, and will be developed and operated in a manner that achieves best practice in responsible mining. In addition, we will be bringing valuable technology and infrastructure as part of the Project that will provide important benefits in key areas like water treatment and purification. We will also be continuing our work to build Cordero’s presence in the community around Parral, and in Chihuahua State, through ongoing direct participation in, and support for, local initiatives, organizations and institutions.

“Another key feature of the Cordero project is the tremendous leverage it provides to the price of silver. The Project’s robust economic returns were estimated using a silver price of US$22 per ounce. To date in 2024, the price of silver has increased close to 20%, to over US$28 per ounce, fueled largely by favourable market fundaments with the silver market expected to be in deficit for the fourth consecutive year in 2024 reflecting record demand in key sectors like electric vehicles, solar and other forms of green energy. At current spot metal prices2, the Project’s after-tax net present value (“NPV5%”) increases by 70%, from US$1.2 billion to US$2.0 billion and reaches US$3.0 billion in Year 4 when the Project reaches final completion to 51,000 tonnes per day. This significant leverage does not include the potential benefit of growth in reserves that could occur at higher prices, with there being 240 million tonnes of Measured and Indicated Resource situated outside the Feasibility Study reserve pit that was estimated using a silver price of US$24 per ounce.

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